Many people have a credit card and some have more than one. Having extra credit cards can be useful in some circumstances but it can also be problematic as well. It is a good idea to have a think about the pros and cons of having more than one credit card so that you can decide whether this will be the right decision for you.

Advantages of Multiple Credit Cards

  • if you have more than one credit card it means that you have more credit available for you to be able to spend. This can be very handy if you have some expensive things to buy and one card will not be enough to cover the cost of them.
  • Having multiple cards means that you can choose to use the one with the lowest interest rate. You will find that they will vary and so if you intend to use a card and not repay what is owed right away, you will find that you will be better off if you use the card that has the lowest interest rate.
  • If you need money in an emergency then it can be reassuring to know that there is a card there that you can use if you need it.

Disadvantages of Multiple Credit Cards

  • Having more money available to spend is not always a good thing for everyone. This is because there are some people that will see it as money that is available for them to use right now. They will treat themselves to lots of things and that will enable them to have lots of fun with the money. However, they will not think about the consequences and the fact that they will have to repay the money at some stage. The way cards work is that if you do not repay the money that you have borrowed on the card by a specified date, then you will be charged interest on it. Many people only pay the minimum required amount each month back, which covers the interest and just a tiny bit more. This means that their debt lasts a long time and is very expensive. Therefore, anyone that feels that they might do this, should avoid having too many credit cards.
  • It can be harder to track what you are spending when you have more than one credit card. This means that you might end up spending more than you can afford to repay. Of course, you can opt not to repay it all, but you may prefer to avoid having to pay the interest if you can. You also need to consider that you may even struggle to cover the minimum payment if you have too many cards.
  • Having lots of cards can look bad on your credit record. It might look as though you are desperate for money and that is never a good thing. Potential lenders will not look on this well and they might decide to not give you any money as a result. You may not be too worried, thinking that it is unlikely that you will need to borrow money in the future. However, it is also landlords and insurers as well as utility companies that look at your credit record. So, this could impact whether you will be able to find somewhere to love, get insurance cover or utilities. It could mean that you will have to use pre payments meters for gas and electricity which are more expensive. It may also mean that insurance cover could be dearer as well as you will be seen as a higher risk.

By Karen

As someone that has a great love for learning, being a freelance writer is the perfect job. I need to research all sorts of topics to write about and that is interesting and fun and it means that I am able to learn lots of interesting things while I am working. I write quickly too which means that I can get a lot done each day which I enjoy. I feel really lucky to be able to do job I enjoy and hopefully write about things that people feel interesting. With this finance writing I feel great knowing that I will be helping people too.

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